Company Introduces World’s First Commercial 16-gigabit, 3-Bit-Per-Cell NAND Flash Chip

SAN FRANCISCO, CALIFORNIA, February 6, 2008– Reaching a new threshold in the development of flash memory, SanDisk Corporation (NASDAQ: SNDK) today announced that it expects to start mass production of the world’s first commercial three-bit-per-cell (x3) NAND flash memory in March/April 2008. The 16-gigabit (Gb) x3 NAND flash employs SanDisk’s standard 56 nanometer (nm) flash technology and provides over 20 percent more die per wafer compared to standard NAND Multi-Level Cell (MLC) memory (2-bits-per-cell) on the same technology node. x3 enables higher manufacturing efficiency and lower die cost for the same capital investment. The new x3 flash architecture has been in development for the past two years and employs SanDisk’s most advanced patented design innovations to achieve the same performance and high reliability found in SanDisk’s 2-bits-per-cell chips.

The 3-bits-per-cell technology was co-developed with Toshiba which shares with SanDisk the development and manufacturing of advanced flash memories. At the 2008 International Solid State Circuits Conference (ISSCC), SanDisk and Toshiba are presenting today a technical paper describing the key technology advancements that led to the development of 16Gb 3-bits-per-cell NAND flash memory on 56nm technology with a write performance of 8 megabytes per second (MB/sec).

Dr. Khandker N. Quader, senior vice president of flash memory design and product development at SanDisk, said, “Innovative patented All Bit Line (ABL) architecture with advanced proprietary programming algorithms and multi-level data storage management schemes were used to overcome the challenges of developing a 3-bits-per-cell (x3) NAND flash memory chip without sacrificing performance or reliability, thereby paving the way for widespread use of x3 across many of SanDisk’s product lines. We consider x3 as a major commercial breakthrough for flash memory that will extend Moore’s Law in this and future generations of NAND flash storage.”

SanDisk believes that the introduction of 3-bits-per-cell technology with a write speed comparable to existing MLC memory positions SanDisk well to respond to the growing market demands for higher density flash memory for a wide range of applications and at a significantly lower cost compared to 2-bits-per-cell MLC on the same technology. Advanced systems-level expertise is essential to productize 3-bits-per-cell NAND memory. SanDisk’s systems-level expertise provides a unique competitive advantage to harness the power of x3 NAND memory technology.

SanDisk Corporation, the inventor and world’s largest supplier of flash
storage cards, is a global leader in flash memory – from research,
manufacturing and product design to consumer branding and retail distribution.
SanDisk’s product portfolio includes flash memory cards for mobile phones, digital cameras and camcorders; digital audio/video players; USB flash drives for consumers and the enterprise; embedded memory for mobile devices; and solid state drives for computers. SanDisk (http://www.sandisk.com/corporate) is a Silicon Valley-based S&P 500 company, with more than half its sales outside the United States.

SanDisk’s web site/home page address: http://www.sandisk.com

SanDisk and the SanDisk logo are trademarks of SanDisk Corporation.

Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder (s).

This press release contains certain forward-looking statements, including expectations for technological advancements, new product introductions, manufacturing efficiencies, lower costs, applications, markets, and customers that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include among others: unexpected delays, or difficulties in producing x3 NAND, higher than expected manufacturing costs, market demand for our products may grow more slowly than our expectations or there may be a slower adoption rate for these products in new markets that we are targeting, our products may not perform as expected and the other risks detailed from time-to-time in our Securities and Exchange Commission filings and reports, including, but not limited to, our Form 10-K and our quarterly reports on Form 10-Q. We do not intend to update the information contained in this press release.